THAT HAVE BEEN DELIVERED TO FAMILIES: THIS IS WHAT YOU NEED TO KNOW ABOUT THE NEW RELIEF.
The U.S. Treasury and Internal Revenue Service announced Thursday morning that families of nearly 60 million children have received $ 15 billion in first monthly payments under the recently expanded Child Tax Credit, a of the major anti-poverty initiatives in President Joe Biden's American Rescue Plan passed. March, and this is what you need to know whether or not you have received relief.
KEY FACTS
About 86% of families who received payments on Thursday did so by direct deposit, while the rest should receive a check in the mail.
The Biden American Rescue Plan expanded the Child Tax Credit from $ 2,000 per child last year to $ 3,600 for each child under age 6 in 2021, and to $ 3,000 from $ 2,000 for children ages 6 to 17.
Although families generally wait until tax filing season to claim the credit, the IRS says it will send out half of the 2021 Child Tax Credit this year in monthly payments to get the money to families earlier during the ongoing pandemic.
Families must continue to receive payments by the 15th of each month for the remainder of the year and are eligible to claim the remainder of the credit on their 2021 tax returns filed next spring.
Las personas que ganan hasta $ 75,000 al año, los jefes de familia hasta $ 112,500 al año y los contribuyentes conjuntos hasta $ 150,000 al año son elegibles para recibir el monto total del crédito.
The IRS is using information from 2019 or 2020 tax returns or the agency's online non-taxpayer tool to determine eligibility; Eligible families who did not file taxes or who no longer enrolled can receive higher monthly payments to catch up to previous months once they enroll.
CRUCIAL APPOINTMENT
"For the first time in our nation's history, American working families are receiving monthly tax relief payments to help pay for essentials like doctor visits, school supplies and groceries," Treasury Secretary Janet Yellen said in a released Thursday, calling the middle-class relief tax an "important step" in reducing child poverty.
BIG NUMBER
$ 4,380. That is the average benefit that more than 90% of families with children will receive under the expanded credit.
TANGENT
The IRS has a tool on its website for families to verify their eligibility. Taxpayers who did not receive direct deposit on Thursday should wait to see if they receive a check in the mail. Anyone who does not must verify their eligibility on the portal.
MAIN CRITICAL
Experts have warned families to be careful when opting for credit if they are unsure of their eligibility, particularly since the IRS is using income from previous years to send payments even though it ultimately uses income from this year to determine eligibility. "Take the money if it reaches you, but keep in mind that it is not stimulus money and you will have to pay it back if you are not entitled to it when it is time to apply."